Rates continue to feel pressure as bank failures, inflation, and continued market discomfort about the economic path we are on with the debt ceiling issues before us. Despite that, we still see new buyers entering the market and more demand for homes than there is supply in most markets. Now many will point to the lower number of loans being done, and that is certainly true, but what you are missing is that there are fewer people and companies in the mortgage arena to handle that business! For those that are working, business is BOOMING! The key is, you must be using specific strategies and have a plan to get in front of these opportunities.
The numbers of mortgage companies and originators continue to fall; but what is missing, are the numbers of banks and credit unions who have left the mortgage business completely as the overhead and the risk rises. Those that once jumped into the mortgage market to buy up market share with portfolio lending, are being quick to exit that business because their boards are concerned that rising rates and falling deposits reduces the CASH VALUE of those holdings. No bank wants to book losses at the same time depositors are pulling their money out!
For those of us that have understood the value of the bank and credit union relationships, we have seen a dramatic number of referrals on great business that these banks and credit unions are no longer interested in doing. While we once partnered with these institutions to take on their turndowns, now we are getting the opportunity to see it all!
The small bank/credit union strategy has always been a solid and reliable strategy to build great referral partner relationships, but now it has opened the door to a significant stream of great mortgage opportunities. With fewer and fewer originators out there to pick up these deals, those working the plan find it to be working VERY VERY WELL!
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